HB476: HB476 Watson-Stephens-Petrea-Franklin Tax Relief Act; enact

This bill sets up a new homestead exemption for homeowners in the Bryan County school district, limiting how much their home's assessed value can increase for school property tax purposes each year. The exemption works by comparing a home's current assessed value to an 'adjusted base year assessed value,' which grows only by an inflation rate set by the Bryan County tax commissioner (using indexes like the Consumer Price Index) plus the value of any major additions or improvements. Homeowners who already have a 2025 homestead exemption on the property are automatically enrolled for 2026 without reapplying, while others must apply through the tax commissioner. The exemption applies only to Bryan County school district taxes for education, not state, county, municipal, or bonded debt taxes, and it does not stack with other base-year homestead exemptions for the same taxes. Because it affects local ad valorem taxation, the Georgia Constitution requires the bill to pass by a two-thirds vote and be approved by Bryan County voters in a November 2025 referendum before it takes effect on January 1, 2026. If voters reject it, the exemption provisions are automatically repealed a year after the election.

• Creates a homestead exemption for Bryan County school district property taxes equal to the growth in a home's assessed value above an inflation-adjusted 'base year' value.
• Directs the Bryan County tax commissioner to set an annual inflation rate, which can be based on federal indexes like the Consumer Price Index, to cap yearly increases in the base value.
• Automatically enrolls homeowners who already had a 2025 homestead exemption into the new exemption for 2026 without requiring a new application.
• Excludes state, county, municipal, and bonded-debt taxes from the exemption, limiting it strictly to Bryan County school operating taxes.
• Requires a November 2025 referendum in the Bryan County school district before the exemption can take effect, with automatic repeal if voters reject it or no election occurs.
• Provides that the exemption does not transfer to new property owners and does not combine with other base-year homestead exemptions for the same school taxes.

Homeowners in the Bryan County school district who claim a homestead exemption, the Bryan County tax commissioner's office, the Bryan County election superintendent, and the Bryan County school district's tax revenue base are all directly affected by this bill.

If approved by voters, homeowners in the Bryan County school district would see their school property tax bills limited by an inflation-based cap rather than rising with the full market value of their homes, though the exemption ends if the property changes ownership.

• Section 1 names the act the 'Watson-Stephens-Petrea-Franklin Tax Relief Act.'
• Section 2 defines key terms like 'adjusted base year assessed value,' 'base year assessed value,' and 'inflation rate,' and sets the exemption formula limiting annual assessed value growth for school tax purposes.
• Section 2(c) allows automatic enrollment for people who held a 2025 homestead exemption on the property and remain eligible in 2026, without needing to reapply.
• Section 2(e) clarifies the exemption applies only to Bryan County school taxes for education, not state, county, municipal, or bond taxes, and cannot be combined with other base-year exemptions for the same taxes.
• Section 3 requires a two-thirds vote in both the House and Senate for the bill to become law, per the Georgia Constitution.
• Section 4 requires a Bryan County school district referendum on the Tuesday after the first Monday in November 2025, with the exemption taking effect January 1, 2026 if approved, or automatic repeal 365 days after the election if rejected or not held.
• Section 5 sets the bill's general effective date as upon the Governor's approval, except for the referendum-dependent Section 2.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 102
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-02-28Senate Passed/Adopted (Senate)
6. 2025-02-28Senate Committee Favorably Reported (Senate)
7. 2025-02-24Senate Read and Referred (Senate)
8. 2025-02-21House Passed/Adopted (House)

• Ron Stephens (R, HD-164)Primary sponsor
• Jesse Petrea (R, HD-166)
• Lehman Franklin (R, HD-160)

1. PassedHouse voteFebruary 21, 2025

   170 yea, 0 nay (7 not voting, 3 absent)

   Local Calendar : House Vote #58

2. PassedSenate voteFebruary 28, 2025

   51 yea, 1 nay (2 not voting, 2 absent)

   Local Consent Calendar: Senate Vote #106

• property taxes
• homestead exemption
• Bryan County
• school taxes
• local referendum